Exchange Rate Now!

This time round, even the International Monetary Fund has chipped in to say that the Chinese Yuan should be adjusted (re-valuated).

The proponents – United States and India. The opponents – Only China.

The proposition of proponents – Re-valuating the Chinese Yuan will solve the trade imbalance – currently, the United States vs China deficit stands at about 62.4%. This is staggering as much of the imports for Chinese products into the United States translates into revenue for the Chinese. And as long as the revenue streams come trickling in, the China economy will continue to grow – at the expense of the United States.

The cold war between the United States and Russia had already passed with the collapse of the Berlin was in 1989. This time round, the economic cold war between United States and China will be more prolonged (more…)

It hardly sound like an enviable name – PIGS. Yet, this is the exact term creatively coined by some journalist which represents the 4 nations in Europe which currently faces the real possibility of financial collapse.

P – Portugal
I – Ireland
G – Greece
S – Spain

It is amazing how Portugal and Spain came to be liken to a financial weakling but years of accumulating debts, borrowings and poor financial controls brought it to the same state with Greece. Amongst the European Union now, leaders must be asking themselves what should be the collective next steps instead of just verbatim. The next step would really have to be (more…)